At this point, a lot of ERP capabilities could probably be "outsourced." To clarify, these core ERP capabilities do not define the business or provide the innovation. However, many ERP installations now consume 80% of the software budget, leaving a paltry 20% for new innovation. There may be scenarios where new deployment options may make more sense for core ERP. Some examples include hosting, managed services and Software as a Service (SaaS).
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